Prospects waiting till the last minute

Oct 27, 2008

  1. Crazy Rick
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    How do we LTC consultants deal with clients in their late 70’s who want to buy a LTC plan with no visible means to pay for it?

    I see classic examples every day. In magazines and on television: they all say the same thing. "My folks need long term care, but they’re both in their 70’s. How do they pay for it?" Some families can tap into retirement or pension or an annuity. But what about the folks, and there are a lot of them, who don’t have any means to pay for a plan? Family? Friends? Ok, what else?

    One elderly woman sold her Life insurance policy to pay for her long term care policy. I don’t think the older prospects are thinking, "It’s too expensive". I think what they’re asking themselves is "How am I going to pay for this?"

    And no, Genworth’s TLC plan isn’t available in Pa. There aren’t many creative financing tools available, but I’m hoping someone here has an answer besides the ones I’ve mentioned. My own gradmother obtained a reverse mortgage. I guess that's another way. What else?

    The simple answer may be to cut off my demographic at 69 (hey, that's my favorite number!). But that would kill the prospects over 69 that DO have the financial means to pay. Follow?


    -CR


     
  2. somarco
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    somarco That Medicare Expert Guy

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    That is not unique to the LTCi market. I believe most folks would not buy insurance if not required.

    If you have a mortgage, you are required to have HO insurance.

    If you have a car, you are required to have auto coverage.

    Some states have enacted partnership laws that (as I understand it) denies you access to Medicaid funds if you do not have LTCi until you first deplete your assets.

    Insurance is something many folks don't want to pay for until they need it.
     
    somarco, Oct 27, 2008
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  3. Crazy Rick
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    Yeah, I here ya. That's where we consultants come in and sell the need. I never thought, something we all need (at least when we hit 40), would be so difficult to sell. I knew it wouldn't be easy, but the denial I hear. The little quips and stuff. I almost want to take them by the hair and show them the cost comparisons.
    - - - - - - - - - - - - - - - - - -
    The marketing material my GA offers and the stuff I've seen. It's all spelled out in "black and white". Clear as crystal. Yet, older Americans STILL don't understand and they STILL keep putting it off. Then they hit 69, the premium's three times the cost and they have no way to pay for a nice, simple, plain vanilla plan and blame then they blame the "greedy insurance companies". Yeah can't win. Unbelieveable.

    Yes, co-op states like Pa, Indiana, New York. If prospects acquire a co-op plan as I like to call them, in a participating state. IF they were ever going to need Medicaid dollars to pay for their long term care, they need to spend down their assests, but their plan they bought protects their assests in the amount of insurance they purchased. If they don't have a plan of any kind, and need Medicaid dollars, then yes, they would automatically have to spend down their assests to the impoverished level.

    Then the State comes in, your spouse gets to keep one car and a monthly stipend of $100 and the person needing the care goes to the 4th floor of hospital in Kennebunk Maine where there will be a bed and footlocker waiting. And of course their spouse can only travel once a year from Cabo Wabo California to visit.
     
    Last edited: Oct 27, 2008
  4. somarco
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    somarco That Medicare Expert Guy

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    I use a consultative approach as well. Something that has served me well for many years.

    But I also know when to cut my losses. Frankly, I don't have the time, energy or desire to "convince" someone they need my product. Either they see the value of my product or not.

    Not everyone makes decisions in your time frame. I use drip marketing to keep in touch with those who are interested.

    The rest opt out or I get tired of mailing things they won't open and move them to my trash.

    I have folks who contact me several months after our initial introduction, including those who never responded to my phone calls or email. A few have bought a year later. Many after 3 - 6 months.

    I wrote $23k in new premium last month from folks I had pretty much given up on. Shows how dumb I am.
     
    somarco, Oct 27, 2008
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  5. Crazy Rick
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    "Frankly, I don't have the time, energy or desire to "convince" someone they need my product. Either they see the value of my product or not." -Yeah, I do the same exact thing. That's why I end my initial email with "Call me if you wish to proceed." I have no disire or energy to convince people. They should see the value in my services and three proposals I attached to said email.

    Not everyone makes decisions in your time frame. I use drip marketing to keep in touch with those who are interested.
    -Yeah, me too. I'm just beginning this process now. Via the U.S. Mail. To ONLY those who spoke with me and were slightly interested in what I had to say. Right! Same deal.
    Hell, maybe some prosepects will call, maybe they won't.
     
  6. somarco
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    somarco That Medicare Expert Guy

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    SW3
     
    somarco, Oct 27, 2008
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  7. Freddie
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    I do not write LTC yet but listened to a lady who writes it. I think a lot of people think that Medicare will take care of them or their spouse can do it. The key to LTC is that if they do not have it they may have to go to a nursing home under Medicaid. They first have to exhaust their assets and hope Medicaid can get them in a nursing home which usually means a 1 year wait and it only going to get worse. The bottom line is LTC helps keep them out of a nursing home and helps keep the other spouse from being impoverished. They want to avoid a nursing home and avoid being a burden to their kids. Still if they cannot afford it then it does not matter.
     
    Freddie, Jan 3, 2009
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  8. Crazy Rick
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    Yeah, LTC is not an easy product and judging by my experience and others here too, we LTC producers STILL have a long way to go. The senior market still believes their spouse or kids or the State will take care of them. I'd say conservatively? 80% of the population thinks this. I still have my practice going and I'm going to start up my leads again on Tuesday. Be a little more agressive this time but not call the prospect 3 times a day like some here have advised. I tried things that way when I sold Scientific Cookware back in the 90's: It didn't work then either. "Mary! are you sitting down? You have a chance to win $1000!" Mary replied "Yeah, uh, I put down on the card, not to call me at work..."
     
  9. somarco
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    somarco That Medicare Expert Guy

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    Perhaps you need to inform them that the state is really the taxpayers. You might also want to inform them about OBRA and what happens to their assets after they die.

    Of course this assumes they even qualify for Medicaid.
     
    somarco, Jan 3, 2009
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  10. Newby
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    Somerco, I assume that was just a horrible choice of words that you put there about the partnership programs. It should say, "ALL states deny you access to Medicaid funds until you deplete your assets."

    What the LTC partnership programs do is allow you to exempt funds from counting as an asset. Most states are dollar for dollar but here in Indiana you have unlimited asset exemption. You can keep millions of dollars in assets and qualify for Medicaid if you outlive your policy benefits. Excellent protection and it doesn't cost the client one single penny extra.
     
    Newby, Jan 3, 2009
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